Monday, November 22, 2010

Ireland and FBI Hedge Fund Raid Don't Dent POMO-Driven Market

According to the World Bank, the population of Ireland (circa. 2008) is 4,425,675. On Sunday, ministers from the ECB, EC, IMF and the Irish government announced a bailout plan for the nation worth roughly $110 billion, or, $24,853.00 for each and every citizen on the island nation.

Naturally, the citizenry won't be getting any of the money. That's going to the banks. The public will be saddled with the debt, an amount so monstrous that one would wisely assume that it will never be repaid. The reason: the banks. Why would it be any other entity running up amazing mountains of debt. Earlier this year, the Irish government bailed out the banks to the tune of about $60 billion, but apparently, that wasn't quite enough, and now the government itself is threatened, by the populace on one side and the IMF and European Union on the other.

Some members of the government are already saying that they won't vote in favor of the package, and are calling for new elections in January. Protests sprung up on Monday, though they were small, organized by Sinn Fein, the political arm of the IRA.

Essentially, Ireland is the second in line - after Greece - for where most of Southern Europe is going: begging to the other members of the EU and the IMF for more money to keep their bankrupt economies going. Portugal is widely believed to be next, then Spain and Italy. These nations, should they accept the same or similar terms as the Irish, will be indentured to global banking interests until they default on the loans or rise up and through out the bankers and overthrow their governments. Either way, the populace will be the worse off for it, as tax hikes are certain on the one hand, and desperation and poverty in an every man for himself environment on the other.

There are those, and their numbers are growing, who believe that it's time for the people to take back their nations, though nobody is particularly keen on the idea of any brutal government crackdown that would surely come in response to a popular uprising.

Thus, the question on the minds of many Europeans tonight is: Would you rather pay taxes and just work your life away, saving nothing, to preserve the present order, or take the chance that things might be better after a bloody coup, a period of anarchy and a reformed Europe that isn't under the thumb of the banking and government oligarchy?

Good question. Only the future holds the answer. Ireland is giving us clues, though, thus far, most prefer the status quo, no violence and payment of tribute without end to governments which have proven to be at least incompetent and at worst, corrupt to the core.

Here in America, the condition is not nearly so dire, but it's close. Our $14 trillion debt is not going away any time soon, our government seems to stumble from one crisis to the next, never fixing anything, while the banks keep hiding their losses off their balance sheets through eased accounting rules and the help of the Federal Reserve.

Today's POMO (money for Wall Street) was a paltry $8.3 billion. More is scheduled for tomorrow, then after a break for Wednesday and Thursday, the injections of cash will continue without respite every business day through December 9. It's how we here in America have now confronted our massive, non-payable debt. We print more money.

The other major story today involved FBI raids on three hedge funds suspected of insider trading. That sent stocks - already down on the rising dollar and Irish blarney - to their lowest levels of the day, the Dow down by nearly 150 points just before 1:00 pm. But - and there's always a "but" these days - with all that POMO money sloshing around, this decline, like all others before it, was viewed as a buying opportunity by the Primary Dealers, flush with cash and stocks rallied for the remainder of the session, closing with marginal losses on the major exchanges, the NASDAQ actually sporting a solid advance.

Dow 11,178.58, -24.97 (0.22%)
NASDAQ 2,532.02, +13.90 (0.55%)
S&P 500 1,197.84, -1.89 (0.16%)
NYSE Composite 7,610.30, -30.78 (0.40%)

Advancers narrowly defeated decliners, 3249-3198. There were 368 new highs and just 68 new lows. Volume, the broken record, was laughably low.

NASDAQ Volume 1,865,878,625
NYSE Volume 4,305,755,500

Oil finished the day down just 24 cents, at $81.74, though it was off more than a dollar earlier in the day. Gold was lower earlier, but rallied to $1366.60, a gain of $12.50. Silver also showed upside, gaining 52 cents, to $27.87.

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